June 16, 2024
Biometric Card Market

Biometric Card Market Poised for Growth Due to Advancements in Security Features

The biometric card market is estimated to witness high growth owing to advancements in security features. Biometric cards integrate fingerprint or facial recognition technologies to provide advanced identity verification and authentication. They offer more secure and convenient alternatives to traditional cards. With growing concerns around identity theft and fraud, biometric cards are becoming increasingly popular for applications like identification, access control, and payment.

The global biometric card market is estimated to be valued at US$ 56.31 Mn in 2024 and is expected to exhibit a CAGR of 3.3% over the forecast period 2024 to 2031.

Key players operating in the biometric card market are Veolia, SUEZ Group, Waste Management, Waste Connections, CLEAN HARBORS INC., Biffa, Covanta Holding Corporation, Stericycle, REMONDIS SE & Co. KG, Republic Services, Inc., Cleanaway, Hawkvale Limited, FCC Environment, Rumpke, DS Smith, Hitachi Transport System, Ltd., Marius Pedersen a.s., Environmental Recovery Corporation of PA, Shell, Montello S.p.A., The Shakti Plastic Industries, Daya Charan Company, Thermowaste Solutions, Banyan Sustainable Waste Management Pvt. Ltd., Premium Recycled Plastics, VITAL WASTE, SAMKI GROUP, and 99P Recycling.

Key Takeaways

Key players operating in the Biometric Card Market Size are focused on introducing advanced authentication features like fingerprint, facial, and iris recognition to enhance security. Major players include Thales, IDEMIA, Watchdata, Goldpac, and Anthropic.

Growing digitization and increased spending on identity management solutions present significant opportunities for biometric card vendors. Rapid adoption of contactless payments is driving demand for multifunctional biometric payment cards.

Technological advancements like miniaturization of biometric sensors, integration of multiple modalities, and greater processing power are enabling more versatile and affordable biometric card solutions. Standards like ISO 7816 are facilitating interoperability between biometric cards and readers.

Market Drivers
Growing concerns around identity fraud and security breaches: High-profile data breaches have heightened awareness around identity protection. Biometric cards help deter identity theft and fraudulent transactions.

Increasing digitization and automation: Digital transformation across industries is driving demand for simple and secure identity verification. Biometric cards offer a seamless user experience for applications ranging from payments to access control.

Evolution of contactless payments: Popularity of mobile wallets and tap-and-pay systems is boosting adoption of smart payment cards with integrated biometric authentication. This allows quick and secure transactions without PIN or signature.

Current challenges in the biometric card market:
The biometric card market is currently facing challenges related to high production and manufacturing costs of biometric cards. Embedding biometric sensors and circuits within plastic cards increases their cost compared to traditional cards. Secondly, integration of biometric technology with existing banking infrastructure is complex and requires upgrades. Lack of common standards for biometric data formats and scanner interfaces poses interoperability issues between different vendors’ solutions. Privacy and security of biometric data stored on cards is another key concern, as loss or theft of cards could lead to identity theft risks. Widespread adoption requires overcoming customers’ perceptions around reliability of biometric authentication and potential security breaches.

SWOT Analysis
Strength: Ability to provide highly secure authentication compared to traditional passwords or PINs. Biometric identifiers like fingerprints are difficult to duplicate.
Weakness: High costs associated with production, components and integration with existing systems. Dependency on external biometric scanners/readers.
Opportunity: Growing demand for contactless and mobile payments is driving interest in biometric payment cards. Possibility of multi-application usage for both payments and identity/access management.
Threats: Privacy and security concerns around storage of biometric data on cards. Need for common standards to ensure interoperability between vendor solutions.

Geographical Regions:
In terms of value, the biometric card market is currently concentrated in North America and Europe. This can be attributed to early adoption of biometric technologies by banks and financial institutions in countries like the US, Canada, UK, Germany and France. The Asia Pacific region is emerging as the fastest growing market, led by countries like India, China and Japan. Increasing digitization of payments and focus on security of digital transactions is driving large-scale pilots and roll-outs of biometric payment cards in Asia.

The biometric card market is expected to witness fastest growth in the Asia Pacific region during the forecast period of 2024 to 2031. Countries like India, China, Japan and South Korea are implementing national ID programs that mandate biometric credentials for citizens. This is generating strong demand for biometric cards that can integrate payment functions along with digital identity. The large population and rapid pace of digitalization makes Asia an attractive market for biometric card vendors aiming for large scale deployments.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it